Federal Reserve

Media Talking The Economy Into A Recession To Defeat Trump

From our perspective we think Ainsley Earhardt of Fox and Friends had it right when she laid the blame for the growing talk of an economic recession on the media's attitude against Trump. “They do not want him to win again and they don’t like that the economy is doing well, apparently," said Ms. Earhardt.

Sending an SOS to the Federal Reserve

Stephen Moore, CNS News

If the world wants more dollars, the Fed must supply them. When commodities rise back to the level they were at a year ago, the Fed can stop cutting rates. We are more than a little troubled by some Fed members' declarations that real growth of 2 percent in America is not possible without higher rates of inflation. This is "secular stagnation" nonsense. We find it amazing that our businessman-president has more monetary street smarts than the combined wisdom of the several hundred economists at the Fed, many of whom boast Ivy League Ph.D.s. Yes, the Fed should remain politically independent, but when the president is right, the Fed should listen to him.

Why the Fed shouldn't compete with private banks

Stephen Moore and Norbert Michel, Washington Times

The Fed has justified its stance based on the notion that “coordination challenges” and “high fixed costs” will prevent other firms from providing competing services with “reasonable effectiveness, scope, and equity.” This strikes us as a highly self-serving analysis that simply justifies the expansion of the Fed’s already enormous independent powers over the banking system. The Fed should stick to its traditional policy and announce that it will remain a neutral facilitator of real-time payments. If it won’t, Congress should intervene in its oversight role and find out why the Fed feels compelled to compete with private banks.

Is Fed Right to Inject Economy with More Dollars?

Stephen Moore, CNS News

Policy changes that promote the production of goods and services don't cause inflation. If anything, more output leads to lower prices. That happened in the Reagan years. Ronald Reagan proved high growth and stable prices can peacefully coexist. This happened in the Clinton years as well, when federal spending was cut dramatically. Of course, the Fed should always keep a watchful eye on inflation, and if it rears its ugly head, the rate cuts and other liquidity measures should cease. But the limits to growth skeptics are wrong. This Trump economy has the capacity to grow north of 3 percent for years to come.

'Who's afraid of cryptocurrencies?'

Stephen Moore, Washington Times

A cryptocurrency is a privately sponsored and operated form of money that is not supplied by government. Bitcoin has already been traded for years, but the new leading horse is the multi-billion dollar Libra, that Facebook is creating. Crypto currencies are coming one way or the other and the unprepared regulatory regimes will mostly delay and complicate their introduction, or may send them underground. The more these products are resisted, the more it is likely to drive up demand for private money alternatives. Just look at the big gains in Bitcoin in recent months. Congress and the regulators should let this new exciting digital technology proliferate.

The Federal Reserve's Tortured Logic

Stephen Moore, CNS News

Yes, the Fed should cut rates now — and it should have done so months ago — because prices are falling in many sectors. Better late than never. There is no sign of inflation anywhere in the economy today. Trump is right to try to drain the Fed board of economists who are still peddling dead Keynesian ideas about money. Sound money and a stable dollar on top of the prosperity-enhancing effects of deregulation and tax cuts can give us 3% to 4% growth with no inflation for as far as the eye can see. Just what is Jerome Powell so afraid of?

Let the Sunshine in at the Federal Reserve

Stephen Moore, CNS News

I'm disappointed I had to withdraw from the nomination to be a member of the Federal Reserve Board because I do believe the Fed needs to change the way it operates. In the last month, I started investigating how it makes its decisions, which have such a dramatic impact on jobs, wages, interest rates and the overall well-being of the country. Polls have shown that over 70% of voters are supportive of more Fed openness. The public has a right to know how our monetary policy is conducted. The Fed's business is the peoples' business, and more transparency would enhance central banks' credibility with the American people, leading to a healthier economy.

Stephen Moore and Herman Cain Are Just What the Fed Needs

Ralph Benko, The American Spectator

Whether or not one accepts Moore’s commodities-index target (I do not) or Cain’s belief in the gold standard (I do), their appointment and confirmation would be consistent with President Trump’s reported desire for better equitable prosperity. Moore calls himself a “growth hawk.” Herman Cain is a sure-enough pro-prosperity supply-sider. Bring it on. Confirming Stephen Moore and Herman Cain would not undermine the Fed’s independence. There’s nothing innately partisan about equitable prosperity. Some of prosperity’s greatest champions, such as the late President John F. Kennedy and the former U.S. Senator Bill Bradley, have been Democrats. President Reagan was a Democrat until his party left him.

Who’s Afraid of Stephen Moore? And Why?

John Fund, National Review

The notion that having Moore on the Federal Reserve Board will make the Fed recklessly follow Donald Trump’s whims is preposterous. All key Fed decisions are made by a committee of up to twelve members — the seven governors nominated by the White House and five heads of regional Fed banks. Moore would be one voice at the table. What’s really astonishing about the hysterical reaction to Moore’s appointment to the Fed is how much it reveals the intellectual insecurity and clannishness at the heart of the Washington policy community.

Federal Reserve Policies Attacking Working Families

Why would the Fed want to do anything to slow the record-breaking run in housing values, slow wage growth and encourage a Bear stock market that will strip more wealth from the retirement accounts and college funds of America’s working families?

Fire the Fed

Stephen Moore and Louis Woodhill, Washington Times

For much of the past two decades, America’s economic problems of slow growth and flat wages were due to the drag of fiscal and regulatory mistakes. Now at the very moment in time when we finally have a president who is slashing tax rates and regulations and is making America a much more business-friendly nation, the Fed’s monetary policy has come unhinged. Cockpit warnings have been sounding for months, not only from the markets, but from President Trump and many other growth economists — including ourselves. We are now suffering the financial ramifications of this “pilot error” on the part of Mr. Powell.

The Fed Steps On Middle America Again

Whether there is a political motive, or simply a Wall Street over Main Street bias one thing is certain: In the alternative universe where Wall Street’s Masters of the Universe and the mandarins who control America’s Federal Reserve Bank live, good economic news for America’s middle-income families is something to be feared.

Is The Fed Trying To Tank The Trump Economy Before The Midterms?

The Federal Reserve has raised rates recently and expects to do so again soon. Translation for those not aligned with the Wall Street – Washington – Silicon Valley Axis: The Fed wants to stifle your wage growth and job mobility by establishing a so-called neutral level that neither spurs nor slows economic growth.

'Don't let the Fed end the Trump prosperity'

Stephen Moore and Louis Woodhill, Washington Times

Consumer prices are growing at between 2 percent and 3 percent. That’s hardly hyperinflation. The Fed’s job is not to stall growth or to prevent economic “overheating,” whatever that means. It is to keep prices stable and the dollar a strong and reliable currency. Rapid GDP growth and rising wages are not the enemy — they are the goal. This is what Trumponomics is all about, and if the Fed isn’t with that program then Mr. Trump is right to attack them for trying to block America’s grand economic comeback.

Federal Reserve Steps On Trump Economic Boom… Again

President Trump campaigned on policies that would boost the economy to 4 percent – or greater – growth. Now, just when America’s hard-pressed middle-income families are beginning to see the benefits of Trump’s policies, is not the time for the Fed to cool the economy.

Will The Fed Stomp On The Trump Economic Boom Right Before The Midterm Election?

An increase In the Fed interest rate could trigger a jump in unemployment claims and a drop in the stock market right before the election, quashing the efforts of the GOP to expand their majority in the Senate and hold or expand their majority in the House by campaigning on the booming economy.

The Federal Reserve’s War On Jobs

A year and a half into the Trump presidency the American economy has seen solid growth, more people in jobs and Wall Street has broken records on a regular basis. However, in the alternative universe where Wall Street’s Masters of the Universe and the mandarins who control America’s Federal Reserve Bank live, good news for America’s middle-income families is apparently bad news.

Will The Fed Raise Interest Rates Helping Wall Street And Hurting Main Street?

President Trump campaigned on policies that would boot the economy to 4 percent – or greater – growth. Now, just when America’s hard-pressed middle-income families are beginning to see the benefits of Trump’s policies, is not the time for the Fed to cool the economy.

JOBS JOBS JOBS!

Economists had forecast 200,000 nonfarm payrolls in February, according to a Bloomberg survey. They raised their forecasts Thursday after a report by the payrolls-processing giant ADP showed the private sector added 298,000 jobs in February, many more than expected.

Obama’s Fed Stifles Trump Market Rally And Economic Recovery Plans

After pumping-up the economy with near-zero interest rates for the entire Obama presidency, we here at CHQ have expected that Obama’s Federal Reserve would not be friendly to Donald Trump’s plans for an economic growth agenda. And the numbers appear to bear us out.